CITIC Securities News APP learned that GF Securities issued a research report stating that policy bullish drivers are often the core of the transportation informationization sector. During 2024H1, two major policies of car and road cloud integration pilot and the digital transformation and upgrading of the infrastructure of highway and waterway transportation were successively implemented, with implementation cycles of 2024-2026. This is expected to drive resonance in transportation sector investment. From the perspective of the industry background, the demand for promoting advanced smart driving applications based on car and road cloud integration technology is objectively existing. The beneficiaries of this policy are providers of digital solutions and products for the smart transportation industry. Against the backdrop of the expected recovery of the automobile sales and smart investment growth, automotive intelligent leading companies with technological leadership and competitiveness will have long-term growth potential.

Continue to be optimistic about transportation informationization, and investment is expected to accelerate in 24H2. By reviewing the trend in recent years, policy bullish drivers are often the core of the transportation informationization sector. The transportation informationization sector has been mainly driven by ETC, Vehicle-Road Cooperative System (V2X) and L3 legislation policies since 2018. During 2024H1, two major policies of car and road cloud integration pilot and the digital transformation and upgrading of the infrastructure of highway and waterway transportation were successively implemented, with implementation cycles of 2024-2026. This is expected to drive resonance in transportation sector investment. From the perspective of the industry development, (1) the digital transformation and upgrading of the infrastructure of highway transportation is expected to gradually start implementing in 24H2, and the relevant listed companies are expected to contribute significantly to the performance in 2025; (2) according to the progress of car and road cloud integration projects in Beijing, Wuhan, and other places that have been disclosed, projects related to car and road cloud integration are expected to start feasibility studies, filings, bidding, and related measures in 24Q2-24Q3, and the relevant companies are expected to contribute significantly to the performance in 2025.

Details of car and road cloud integration: (1) From the perspective of the industry background, safety is the foundation of the development of autonomous driving. Given current domestic automakers' technology and computing power, there is a demand for promoting advanced smart driving applications based on car and road cloud integration technology. (2) From the perspective of the construction content and market size, the car and road cloud integration system is composed of vehicles and other traffic participants, roadside infrastructure, cloud control platform, related support platform, communication network, and other parts. According to the analysis of the car and road cloud integration system architecture and industry data, it is estimated that the market size of perception and edge computing of car and road cloud integration will be 22.3/414.7 billion yuan in 2025/2030, which belongs to a relatively large single segmentation market. In addition, the market space of 5G cellular network, C-V2X terminal, and cloud control platform will be 7.4/39.1 billion yuan, 2.5/7.3 billion yuan, and 2.3/21.8 billion yuan respectively in 2025/2030.

Risk Warning: The impact of increased domestic automobile price competition and sales fluctuations on the relevant companies' business; the promotion and penetration of new products such as ADAS and high-level intelligent driving domain controller did not meet expectations; competition in the industry intensifies with the entry of various non-traditional automobile industry chain companies; industrial policy development is slower than expected.